Sarbanes-Oxley Requires Management to Issue an Internal Control Report That

question 60

Multiple Choice

Sarbanes-Oxley requires management to issue an internal control report that includes two specific items.Which of the following is one of these two requirements?

• A)A statement that management is responsible for establishing and maintaining an adequate internal control structure and procedures for financial reporting
• B)A statement that management and the board of directors are jointly responsible for establishing and maintaining an adequate internal control structure and procedures for financial reporting
• C)A statement that management, the board of directors, and the external auditors are jointly responsible for establishing and maintaining an adequate internal control structure and procedures for financial reporting
• D)A statement that the external auditors are solely responsible

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Definitions:

Numerous Onlookers

The presence of a large number of observers or spectators, often referred to in contexts of public events or occurrences witnessed by many.

Ambiguous Situation

A situation where information is unclear or lacks specificity, leading to multiple interpretations.

Low-density Population

An area characterized by a small number of people living in a given geographic region, resulting in a low population density.

Social Exchange Theory

A sociological theory suggesting that social behavior is the result of an exchange process aiming to maximize benefits and minimize costs.